Patterson-UTI Energy Reports Financial Results for the Quarter Ended September 30, 2026
HOUSTON, TX / ACCESS Newswire / October 28, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported financial results for the quarter ended September 30, 2026.
Third Quarter 2026 Financial Results and Other Key Items
Management Commentary
"We are benefiting from increased U.S. onshore drilling and completion demand, which is supporting stronger pricing and returns," said Andy Hendricks, Chief Executive Officer. "Our teams executed well during the quarter, and investments in our fleet and digital and automation capabilities are delivering differentiated operational performance for our customers. As these capabilities continue to gain momentum and industry demand strengthens, we expect further improvements in financial performance, and believe we are well positioned to improve our market position."
"The commodity price environment continues to support higher customer budgets, and our discussions indicate the likelihood for additional rig reactivations and increased completion demand in 2027," continued Mr. Hendricks. "In Drilling Services, customer programs are increasingly requiring upgraded rigs with advanced digital and automation capabilities and larger structures designed to drill deeper wells and longer laterals more efficiently. Demand for these capabilities is supporting strong pricing for our highest-specification rigs. In Completion Services, pricing momentum remains positive, particularly for natural gas-powered assets, which provides a substantial fuel-cost advantage over diesel equipment. Natural gas powered frac equipment remains in very short supply, and further pricing improvement will be necessary to support the investment required to meet industry demand. These market conditions should allow us to create additional value for our shareholders."
"We generated strong free cash flow during the quarter, reinforcing our confidence in our outlook," said Andy Smith, Chief Financial Officer. "We expect free cash flow to remain strong in the fourth quarter and increase meaningfully in 2027 compared with 2026. During the third quarter, we returned approximately $62 million to shareholders, including $24 million for share repurchases. We continue to evaluate a range of capital-allocation opportunities, including high-return strategic investments, additional cash returns to shareholders, and debt reduction. Our priority remains maximizing return on capital, while maintaining the long-term flexibility of our balance sheet."
Drilling Services
Third quarter Drilling Services revenue was $417 million, and adjusted gross profit (2) was $149 million.
U.S. Contract Drilling operating days totaled 9,249 in the third quarter, with an average of 101 rigs operating. Activity increased throughout the quarter, and we exited the period with 104 rigs operating. Demand was particularly strong for rigs returning to service following structural upgrades, supporting premium pricing for our highest specification rigs. Growth was concentrated in oil-producing basins, particularly the Rockies and Permian, while natural gas activity remained steady compared with the beginning of the third quarter. Our Directional Drilling business also benefited from increased demand and greater well complexity, with results outpacing the overall industry drilling activity with stronger margins.
Completion Services
Third quarter Completion Services revenue totaled $808 million, with adjusted gross profit of $133 million.
Completion Services results improved sequentially, supported by a mid-single-digit pricing increase compared with the second quarter. Total completion activity declined modestly as several fleets experienced elevated non-productive time late in the quarter, primarily due to temporary sand availability constraints in South Texas and trucking delays in the Permian Basin. Excluding these short-term disruptions, fleetwide utilization remained very strong, with positive pricing momentum continuing throughout the quarter and into the fourth quarter. Demand was particularly robust for equipment capable of using natural gas as a fuel. By the end of 2026, approximately 90% of our active fleet will be natural gas capable.
Drilling Products
Third quarter Drilling Products revenue totaled $110 million, with adjusted gross profit of $51 million.
Drilling Products delivered its strongest quarterly revenue and adjusted gross profit since Patterson-UTI acquired Ulterra in 2023, with revenue increasing 21% sequentially and improved margins. Strong U.S. demand drove a company record revenue per industry rig and supported higher pricing. International revenue also increased sequentially, reaching a company record for the second consecutive quarter. This performance reflects the team's effective management of challenges related to the conflict in the Middle East, which is our largest international market.
Other
Third quarter Other revenue totaled $6 million, with adjusted gross profit of $4 million.
Outlook
In Drilling Services, we expect to operate an average of approximately 104 rigs in the United States during the fourth quarter and exit 2026 above that level, with additional rig reactivations anticipated in the first quarter of 2027. Results should benefit from continued pricing momentum, including higher dayrates across all rig classes and the deployment of upgraded rigs at dayrates above our current average. We expect to incur reactivation costs during the quarter as we prepare additional rigs for reactivation late in the fourth quarter and in early 2027, and we anticipate additional costs as we wind-down our operations in Colombia. Overall, we expect Drilling Services adjusted gross profit of $150 million in the fourth quarter.
In Completion Services, we expect fourth quarter adjusted gross profit of $140 million, supported by activity levels broadly consistent with the third quarter and additional pricing improvements. We anticipate some seasonal and holiday impact in the fourth quarter, although at this time it appears likely that it will be less pronounced than in prior fourth quarters. As we deploy new Emerald 100% natural gas powered equipment, we will continue to decommission diesel-powered assets and therefore do not expect active horsepower to increase through the first half of 2027.
In Drilling Products, we expect fourth quarter adjusted gross profit to decline 5-10%, sequentially, primarily reflecting the expectation for lower drilling activity in Saudi Arabia due to ongoing geopolitical unrest in the region.
We expect Other adjusted gross profit in the fourth quarter to be steady compared to the third quarter.
For the fourth quarter, we expect general and administrative expense to be approximately $70 million and depreciation, depletion, amortization, and impairment expense to be approximately $220 million.
Except for cash dividends per common share, all references to "per share" in this press release are diluted earnings per common share as defined within Accounting Standards Codification Topic 260.
Third Quarter Earnings Conference Call
The Company's quarterly conference call to discuss the operating results for the quarter ended September 30, 2026, is scheduled for October 29, 2026, at 9:00 a.m. Central Time. The dial-in information for participants is (833) 461-5787 (Domestic) and (585) 542-9983 (International). The Meeting ID for both numbers is 653 922 397. The call is also being webcast and can be accessed through the Investor Relations section of the Company's website at investor.patenergy.com. A webcast replay of the conference call will be on the Company's website for one year.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "goal," "intend," "may," "plan," "potential," "predict," "project," "pursue," "see," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including, without limitation, statements regarding Patterson-UTI's future expectations, beliefs, plans, strategy, objectives, financial conditions, operations outlook, assumptions or future events or performance, activity levels, active rig count projections, contract terms, capex spending and budgets, future cash flow, future use of generated cash flow, customer demand, future commodity prices, outlook for international and domestic markets, and timing and amount of dividends, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. For information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and other disclosures in Patterson-UTI's SEC filings, including but not limited to its Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q.
Additional information concerning risks and uncertainties associated with Patterson-UTI's business is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
Non-GAAP Financial Measures
(1) Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is not defined by GAAP. See Non-GAAP Financial Measures below for a reconciliation of net income to Adjusted EBITDA.
(2) Adjusted gross profit is considered a non-GAAP financial measure. Our computations of Adjusted gross profit may not be the same as similarly titled measures of other companies. See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
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Additional Financial and Operating Data
(unaudited, dollars in thousands)
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted EBITDA Reconciliations
(unaudited, dollars in thousands)
The following table reconciles Net income (loss) per the information below to Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") as reported on the unaudited Condensed Consolidated Statements of Operations:
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Gross Profit Reconciliations
(unaudited, dollars in thousands)
The following table reconciles Adjusted gross profit to gross profit, which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to Adjusted gross profit:
Contact:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589
SOURCE: Patterson-UTI Energy